Mobility: Economic & Policy Challenges William Lehr
[email protected] Massachusetts Institute of Technology
WINLAB: Spring 2010 Research Review Rutgers University New Brunswick, NJ June 10, 2010
©Lehr, 2010
Mobility: Economic & Policy Challenges
Future vision of mobile Internet & its implications Econ/policy in Network Architecture Design Some mobility related research challenges
©Lehr, 2010
2
Internet Future: broadband & mobile (wireless) User experience: pervasive computing -- Ubiquitous, always on, 24/7 -- Mobile/portable -- Multimedia -- Interactive -- Embedded, Unaware -- Personalized Implications: intelligent edges (and networks) -- Broadband -- Wireless (and wired, integrated) -- Context aware & dynamic -- Intelligent networks and devices Essential socio-economic infrastructure -- Ever present in our lives, businesses (so will be regulated! Q: how?) -- Heterogeneous (technology, users, uses, business models, markets) -- Dynamic (context adaptive, varying time scales…) -- Distributed control/ownership (multi-stakeholder coordination)
©Lehr, 2010
3
Transition to
Liquid Value Chains
SOLID PHASE -- vertical value/production chains -- hierarchical -- standardization -- rigid organizational structure -- well-defined industry boundaries -- public utility regulation
e.g., Traditional telecoms Retail trade Broadcasting/media content Product design/marketing Utility regulation
LIQUID PHASE -- flexible/dynamic organizations -- distributed, peering, outsourcing -- interfaces -- interactive -- industry convergence -- market competition
e.g., Internet eCommerce, eBay Blogs, Wikipedia, YouTube Viral marketing Markets & standards
©Lehr, 2010
4
Mobility: Economic & Policy Challenges What moves? Potentially everything… -- Users: follow the user, not the device (personalization, experience) -- Devices: follow device separately (privacy & RF regulation) -- Networks: groups of nodes move -- Content/apps: digital rights management -- Control
How moving? -- Geo-spatially (location awareness) -- Topologically
-- Time (dynamically) -- Context
New opportunities & challenges -- New markets: mCommerce, mHealth, mEntertainment, mGovt, Smart grids …. -- Industry/business restructuring -- Regulatory reform: Command & Control => Markets -- Trustworthy => Reliable, Secure, Privacy-preserving
©Lehr, 2010
5
Internet Design for the Mobile Future Commercializability: is the architecture economically viable? -- “Market-based” resource allocation ** Open system: substitution/complementarity, externalities, … ** Strategic behavior ** Evolvability/deployability -- Cost/Benefit Analysis: Technical Performance not the most important! -- Challenge optimization or coordination (search)?
Regulability: is the architecture consistent with public policy? -- Collective decision-making: no unique answers. Efficiency & Fairness matter -- Some general themese… * Pro-competitive : does architecture threaten monopoly? “Access” regs? * Enforceability & Market rules : what institutions with what info needed? * Trustworthy : Reliable, Secure, but also Privacy-preserving ©Lehr, 2010
6
What “economic/policy” functionality to embed in core? e.g., Micropayment support? DRM? Regulatory enforcement?
Micropayments: dynamic resource markets, flexible/efficient contracts -- Incentives for efficient dynamic resource sharing/management -- Facilitate dynamic QoS & End-to-end coordination -- But how granular? A market design question * granularity must be consistent with anticipated contracts * goal to incentivize good behavior: whose behavior over what time period?
Key elements: -- Communication/info: can buyers/sellers observe what they need to? -- Control: how fine grained is resource control? Property rights? -- Value v. Transaction costs: assignment efficiency v. overhead? Preliminary thoughts: do not embed micropayments as core function -- Transaction costs, evolvability, institutional bias -- Need (a) Separate control plane, (b) separation of naming/addressing for flexible transacting/partitioning of mobile resources ©Lehr, 2010
7
Mobility Challenges & the Internet Spectrum Mobility
Internet -- sensing -- layering -- transaction mgmt
-- Scarcity: need to share more intensively -- Frequency agility: CR/SDR, LTE, etc. -- Dynamic Spectrum Access
Network Mobility -- Ad hoc/mesh networking support -- Public safety: situation awareness/force mgmt -- Evolving the status quo…User acceptance…
Content Mobility -- DRM -- Efficient content delivery -- Privacy (access), e.g. health data….
©Lehr, 2010
Internet -- Distributed coordination -- Interoperability -- Security/reliability
Internet -- Rights mgmt/expression -- First Amendment platform 8
Business models for spectrum sharing Spectrum access regime Technical Design & Use * quality: predictability availability, interference protection * OPEX/CAPEX
Primary Sharing
Non-Cooperative
Cooperative
Permission of primary user not needed. No explicit coordination. Other signals look like noise.
Permission of primary user needed. Explicit coordination. Other signals recognizable.
Unlicensed, e.g., WiFi, Bluetooth
Secondary markets, e.g., leasing
Bandwidth Manager (real-time) Closed commons Secondary Sharing
Easements: -- underlay, e.g. UWB -- overlay, e.g., TV White space (LBT)
Bilateral contracting
How will spectrum sharing evolve with LTE, WiMAX, TVWS, etc.? ©Lehr, 2010
9
Mobility: Economic & Policy Challenges
Future Internet is part of Socio-Economic System that must co-evolve… Technology
-- Changing environment -- Embedded policy -- Markets, not C&C
Markets
Policy
Research tools: -- Public Policy Audit: is arch consistent with Commercializability & Regulability goals? -- Roadmap for deployment -- At scale operational testing (early adopter communities)
Thanks! Bill Lehr
[email protected] ©Lehr, 2010
10
Backup slides not used
©Lehr, 2010
11
Selected References
Lehr, W. and J. Chapin (2010) ”On the convergence of wired and wireless access network architectures,” Information Economics and Policy, January 2010. Lehr, W. and N. Jesuale (2008) "Public Safety Radios Need to Pool Spectrum," IEEE Communications Magazine, March 2009. Lehr, W., E. Lear, & T. Vest (2008), "Running on Empty: the challenge of managing Internet addresses, 36th Research Conference on Communication, Information, and Internet Policy, Arlington, VA, September 2008. Chapin, J. and W. Lehr (2007a), "The path to market success for dynamic spectrum access technology," IEEE Communications Magazine, May 2007. Chapin, J. and W. Lehr (2007b), "Time Limited Leases for Innovative Radios,” IEEE Communications Magazine, June 2007. Clark, D., W. Lehr, et al. (2007) "Complexity of Internet Interconnections: Technology, Incentives and Implications for Policy,” 35th Annual Telecommunications Policy Research Conference, Arlington, VA, September 2007.
Available at: http://people.csail.mit.edu/wlehr
©Lehr, 2010
12
faster Data Processing
Weeks Batch Megabytes Punch Cards Few People
Clockspeed Internet
(Still Happening)
Days Request/Reply Terabytes Human Many People
Real Time
Minutes Automated Exabytes Event Driven Beyond People
-- more competition (faster entry/exit, geographic mobility) -- shorter product (firm/industry) lifecycles -- more systemic uncertainty (volatility, complexity) -- competitive advantage more ephemeral e.g., Just-in-time organization, outsourcing, plan for unexpected, IT-intensive
©Lehr, 2010
13
End-user
Empowerment
End-users have the options… -- ICT saavy generation -- Rising discretionary income -- Communication intensive
(aka, distributed control/ownership…) Collectively, they control the info -- Wikis, Blogs, Social networks -- Viral networking -- Flash mobs
They control the platform -- Cell phone, iPod, PC -- Application (and OS) -- Lease or buy?
What do businesses need to do? -- proactive customer engagement -- interactive, open, truthful -- churn accelerates (fast and fickle)
They control the time/place -- Stream or Store/forward -- Internet is everywhere
Opportunities: -- self-service economy -- partners in risk/capital management -- continuous innovation
©Lehr, 2010
14
